1 Innovation by design How design enables science and technology research to achieve greater impact 3 The Valley of Death – everyone “ talks about conquering it, but if you visualise commercially-minded people on one side and scientists on the other, we need a bridge in the middle to meet halfway. Where scientists need an appreciation of market orientations, the commercially-minded have to have an appreciation of the science and its development. The UK has been inventing for years but has not been very good at commercialisation – now we’re trying to do that, and design is a huge part of that. Keith Dobson, Head of Business Development, NPL ” 3 Contents Introduction 4 Key findings 5 The evaluation findings in detail 9 Recommendations 18 References 19 Acknowledgements Achim Hoffmann, IP Group Research and evaluation conducted Stephen Holloway, Liverpool University by Technopolis Group: Peter Kolarz, Mark Holmes, BIS Paul Simmonds, Oliver Cassagneau- Paul Mason, Innovate UK Francis, Helena Kovacs, Tammy Sharp, Nathan Pike, ISIS (Oxford) and Martin Wain. George Rice, University of Nottingham Malcolm Skingle, GlaxoSmithKline Interviewees David Sweeney, HEFCE Stuart Brown, Staffordshire University Emma Wakelin, AHRC Alison Campbell, Irish Universities Rosa Wilkinson, IPO Association Keith Dobson, NPL Case study contributors Paul Findlay, University of Hertfordshire University of Bristol, University of Tony Greenwood, Royal Holloway University Leicester, University of Nottingham, Ben Griffin, Innovate UK University of Reading, Newcastle Neil Gridley, Design Council University, Sheffield Hallam University, Georgia Hatzigiannidou, Sheffield Hallam University of Exeter, University of University Hertfordshire, University of Glasgow. Tom Hockaday, University of Oxford 5 Introduction The UK has a phenomenal scientific research base. Its universities are amongst the most successful in the world for scientific discovery, coming second only to the USA for research citations. This cutting-edge science and innovation base is at the heart of plans for long-term economic growth and is crucial to our ability to cope with urgent and complex societal and health challenges such as obesity and dementia. But the UK is lagging behind other This report is particularly timely, as it countries in making the most of these coincides with several key developments kinds of opportunities. We invest less in innovation policy both in the UK and in research and development and beyond. In particular, the Department our innovation system often presents of Business, Innovation and Skills’ (BIS) formidable obstacles in getting scientific Science and Innovation Strategy (2014) ideas and discoveries to market. aims to further focus efforts to support business investment in R&D, as well as Creating the right environment for science to increase use of the UK’s science and innovation requires a strong pipeline of innovation systems to support Small and talent and skills from schools to universities Medium-Sized Enterprises (SMEs). The and professional research. Also vital is strategy includes strong references to the a placed-based approach to strategic importance of design: planning: science facilities must have the right transport infrastructure and proximity “The UK is world-renowned for its design to businesses and housing. The right tools capability – capability that is championed and methods to catalyse innovation are nationally by Design Council as a means to also key. create better places to live, better products to use and healthier living.” Design is one of the most powerful tools we have for this and for smoothing Commercialising science research is the journey from research insight to also a central pillar of the UK’s Industrial practical, marketable applications. It Strategy (2012), which coincides with provides structure and focus to the wider developments at the EU level. The innovation journey by helping to find importance of design as a key discipline practical applications for research and activity to bring ideas to market has insights and mapping the route from been recognised in commitment 19 of idea to market proposition. Innovation Union, a flagship initiative in the Europe 2020 Growth Strategy. To provide an evidence base on the role of design to aid research This consensus has most recently resulted commercialisation, in 2014 Design Council in the European Commission’s Action commissioned an evaluation report from Plan for Design-Driven Innovation, which, Technopolis Group on the role of design over the next two years, aims to spread in the commercialisation of science and awareness about design for growth and technology. The research was conducted consult on ways to build greater design between April and October 2014, and capacity into businesses across all consisted of a focused literature review, member states.1 two surveys, respectively of programme beneficiaries and non-beneficiaries, a set of 20 stakeholder interviews, and ten case studies of commercialisation projects supported by Design Council. 5 Key findings The research demonstrates that design accelerates commercialisation and increases value. Specifically, the evidence highlights the following main benefits to commercialisation projects: Greater ability to secure further Beyond these direct effects on specific 1 development funding commercialisation projects, we also find that design support has considerable Clearer communication of new spillover effects on other projects, as 2 technology to potential investors well as on the Technology Transfer (TT) organisations as a whole. Moreover, Improved prototyping, fundraising we find that several instances of design 3 pitches and market entry strategies. support – be that in the form of project mentoring or training days for TT staff – Based on this evidence, design has the have a cumulative effect. potential to improve the productivity of UK technology transfer and increase both As a result of multiple instances of support, the proportion of university Intellectual design capacity is built up, resulting in Property (IP) that finds application in overall benefits to the Technology Transfer society and the absolute number of high- Office’s (TTO) operations: growth, star performers. Increased ability to identify commercial 4 viability of new technologies Better portfolio management 5 and risk reduction Increased links between TTOs 6 and the design industry. 7 University commercialisation in the UK TTOs cannot therefore simply be TTOs are no longer viewed purely as understood as standalone organisations a vehicle for one-way linear transfer of aiming to generate revenue through technology from laboratory to market. assisting academics with the They are instead understood as key linkage commercialisation of their research. and communication points between Instead, they play an increasingly significant research, industry and government, part in aiding the impact agenda, as well as where technologies themselves, as well the changed focus of government policy as expertise from within the research to stimulate private-sector growth through community, are shared with the outside higher education institutions. world, but where expertise, demand and opportunity are also brought into the As such, the importance of technology research institution from elsewhere. transfer facilities at universities has increased significantly, and more training They are vital in helping technologists and resources have been diverted to these navigate the legal and regulatory hurdles endeavours in recent years. The role of they face from early-stage development design support needs to be understood in through to commercialisation and the context of this changing mission and identifying opportunities such as funding. funding landscape. What they tend to lack, however, is the expertise needed to help turn innovative “‘Design’ is what links science and technology research into viable, profitable products and/or services. creativity and innovation. It shapes ideas to become Following the recent recession, there was practical and attractive a refocus of government policy to better target public investments for stimulation of propositions for users or private-sector growth. This was especially customers. Design may the case for higher education institutions. be described as creativity While, for the most part, higher education and research funding is distributed via deployed to a specific end.” HEFCE through the Research Councils The Cox Review, 2005 on the basis of peer review and academic merit (known as the Haldane principle), the new impact agenda has led to a greater need to ensure research is used beyond the academic sphere. There is additional incentive directly through BIS and Innovate UK to focus research specifically on areas of high potential growth.2 ‘The impact agenda is absolutely imperative to the prosperity of the UK.” Dr Malcolm Skingle, Director of Academic Liaison, GlaxoSmithKline6 7 The benefits of design design support and raising the profile of Interest in the topic of design and its design. In the Innovation and Research importance to innovation and economic Strategy (2011), BIS acknowledged growth received a major boost through the strategic importance of design for the Cox Review in 2005.3 Highlighting the innovation, noting: strongly increased competitiveness of emerging economies such as China and “Most successful high-tech businesses India, it concluded that the UK needed to are design and technology-driven. better draw on the strength of its